Despite global uncertainty and geopolitical disruptions, Indian markets have displayed surprising resilience. Manishi Raychaudhuri, chief executive officer of Emmer Capital Partners, observed that markets across Asia have climbed “several walls of worry,” including trade tensions, military conflicts, and policy volatility.Raychaudhuri highlighted that the MSCI Asia ex-Japan index has already risen 14–15% in 2025, trading in line with long-term price-to-earnings and price-to-book averages. “That kind of strength in the face of such uncertainty is unexpected,” he told NDTV Profit. However, while Asia has outperformed, India has somewhat lagged behind—up only around 6.7% in rupee terms so far this year, and even less when adjusted for the US dollar.India's Premium Valuation Still A ConcernIndia’s equity markets have long traded at a premium, and Raychaudhuri believes this is justified given its growth potential. However, he cautioned that the current premium—55% over Asia ex-Japan—is significantly higher than the historical average of 40%. “India remains overvalued,” he said, suggesting that further underperformance may be necessary to bring valuations back to sustainable levels.Raychaudhuri also flagged concerns around corporate earnings. Consensus earnings estimates for fiscal 2025 and fiscal 2026 have declined by 6–7%, reflecting cautious sentiment. “We need stability first, then a pickup in estimates. Until then, the market may find it difficult to attract stronger flows,” he added.Stock Market Today: Benchmarks Settle With Best Weekly Gains In Over A Month; Nifty Bank Ends At Record HighRBI’s Jumbo Rate Cut And ImplicationsOne recent development that could alter the trajectory is the Reserve Bank of India’s surprise 50 basis point rate cut, accompanied by a reduction in the Cash Reserve Ratio. “This was a genuine surprise to the market,” Raychaudhuri admitted, adding that its full impact may play out over the next few quarters. He expects earnings estimates to stabilise in the near term and potentially begin rising in the final quarter of 2025.He also warned that while macro indicators appear strong, rising household debt could be a sign of underlying stress. “Household debt-to-GDP has climbed from 36% to 42% in just a few years. Credit card debt is surging. The RBI may be responding to softening household consumption,” he noted.Favouring FinancialsLooking ahead, Raychaudhuri remains positive on the banking, financial services and insurance sector, especially private sector banks. “If India is to grow at 10–14%, this growth needs financing. Private banks, with better asset quality and reach, are best positioned to support and benefit from this expansion.”Market Experts' LIVE Stock Recommendations: Buy, Sell or Hold Today?. Read more on Markets by NDTV Profit.